Amkor to Acquire Fujitsu's Assembly and Test Operations
Online staff -- 4/23/2002 Electronic News
Amkor Technology Inc. today said it is acquiring 67 percent of Fujitsu Ltd.’s interest in its semiconductor assembly and test operation, Kyushu Fujitsu Electronics Ltd. Financial details were not disclosed.
The two companies have signed a non-binding memorandum of understanding for Amkor’s staged equity purchase of Fujitsu's semiconductor assembly and test operations. Chandler, Ariz.-based Amkor sees the deal as its entry point to the Japanese market.
The two companies will form a joint venture company to operate for three years before Amkor buys out the remaining 33 percent for a predetermined amount. The joint venture company would also be obliged to provide manufacturing services to Fujitsu for five years.
"This assembly and test venture with Fujitsu is further evidence that the Japan semiconductor industry continues to move toward an outsourcing model," said John Boruch, Amkor’s president and COO, in a statement. "... The addition of this joint venture company with Amkor Iwate, our outsourcing venture with Toshiba, creates a second powerful operational presence in Japan and allows Amkor to provide Japanese semiconductor manufacturers with an unmatched array of outsourced assembly and test services."
Amkor’s joint venture with Fujitsu would be located on Japan’s Silicon Island, home to many other wafer fabs. The joint venture is pegged to incorporate four buildings covering 300,000 square feet of manufacturing area.
Kyushu Fujitsu Electronics currently provides assembly and test services including bump chip carrier (BCC) and stacked multi-chip packages (S-MCP). The company’s assembly and test revenues equalld about $100 million for 2001.
"Fujitsu has been vigorously pursuing a comprehensive structural reform program aimed at enhancing competitiveness," said Masamichi Ogura, group president of Fujitsu’s electronic devices business group, in a statement. "Our proposed joint venture with Amkor would allow us to lower operating costs and capital requirements, as well as focus on our core competencies - namely, developing and delivering high-performance / high-reliability semiconductor products and high value-added services. We’re confident this will make a positive contribution to reinforcing our overall position in the semiconductor business." |
